The latest Construction Pipeline Trend Report by Lodging Econometrics (LE), for the fourth quarter of 2025, finds Canada’s total construction pipeline at 332 projects and 45,429 rooms. The latter is a 5% increase year-over-year (YOY).

At year-end 2025, there were 70 projects and 9,189 rooms under construction in Canada. Meanwhile, there were 90 projects and 12,614 rooms scheduled to start construction anytime in the next 12 months. That reflects growth of 3% in projects and 8% in rooms YOY.

Projects in early planning reached a record-high rooms total of 23,626 rooms across 172 projects, up 11% by rooms and 1% by projects YOY.

LE finds that construction starts demonstrated remarkable strength, increasing 60% YOY and reaching 16 projects and 2,254 rooms, the highest number of starts seen since Q4 2023.

Ontario continues to lead development among the provinces, with 189 projects and 27,039 rooms, representing 57% of the country’s total pipeline projects. British Columbia demonstrated impressive growth at the Q4 close, reaching 69 projects and 10,171 rooms, up 17% by projects and 20% by rooms YOY, and accounting for 21% of the country’s total pipeline projects. Quebec also showed strong performance with 27 projects and 3,106 rooms, up 13% by projects and 14% by rooms YOY.

The top cities in Canada’s construction pipeline are led by Toronto with 74 projects and 12,170 rooms, representing 22% of the country’s total pipeline projects, with growth of 21% by rooms YOY. Vancouver achieved exceptional growth, reaching 34 projects and 5,966 rooms, up 36% by both projects and rooms YOY. Niagara Falls follows with 20 projects and 5,420 rooms.

New project announcements achieved a record-high rooms total at the Q4 2025 close with 29 projects and 5,783 rooms, up 14% by rooms YOY. Combined hotel renovations and brand conversions totaled 119 projects and 16,432 rooms, reflecting a 10% increase in rooms YOY.

In 2025, 40 hotels and 4,744 rooms opened, representing a 1.3% supply growth rate. LE is forecasting 40 new hotels and 4,944 rooms to open in 2026, representing another 1.3% growth rate.

The forecast for 2027 calls for 49 new hotels opening, bringing 5,501 additional rooms to Canada’s room supply, for a 1.5% growth rate.